Personal Development

The One Thing You Can’t Afford to Screw Up in Real Estate

Expertise: Commercial Real Estate, Personal Finance, Real Estate Marketing, Business Management, Landlording & Rental Properties, Real Estate Investing Basics, Personal Development, Real Estate News & Commentary, Mortgages & Creative Financing
230 Articles Written
everyday-mistakes

What’s the one thing you can’t afford to screw up if you’re in real estate?

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Your reputation.

House deals come and go. Money comes and goes. Your reputation — and your name — are the only things with you for your whole life.

wholesaling-market

A Name & Reputation Are Hard to Earn

It takes time, and effort, and resources. Yet an entire lifetime of good work can be wrecked in an instant. An entire life of great work and deeds can be destroyed by one moment of weakness.

This is especially true in business — and even more so in real estate. There is enough distrust of real estate professionals and the industry already. Consumers and investors are just looking for a reason to confirm their fears and not to trust you. With mobile and the internet, most will heavily research you before considering doing business with you. Recent data shows that consumers now check as many as 10 to 20 online reviews before doing business with someone. And in the real estate world, news travels fast. If you get a bad rep, you can expect to be cut off from the best vendors, lenders, and partners quickly. That means losing out on the best deals, missing the best tenants or buyers, suffering poor service, and paying more for everything, while deals take longer to do.

Related: 10 Ways to Build a Reputation as Your Market’s Premier Real Estate Investor

Own Your Mistakes

Of course, none of us is perfect. Sometimes the smoothest transactions that you thought went well end up with a bad review. Some people just won’t tell you to your face that they weren’t happy. Then there are those who will never be happy. And then there are the transactions and deals that just get messed up, have mistakes, or differences in expectations. It doesn’t really matter the reason, but if you have an issue, fix it!

If you make a mishap on a deal, you better fix it. If you do make a mistake on something, own it! There’s no use in trying to cover it up or make excuses. Reach out and embrace the opportunity to make things right. It just shows people that you are that much of a human. And if you’ve ever looked at reviews online, you’ll see that it isn’t the presence of complaints that is the problem; it is how they are answered and solved. Look at these moments as a chance to shine and show how awesome you are.

happy-employees

Take Pride in How You Treat People

My personal philosophy is always to set yourself up for long-term, not short-term, gains. That means taking care in the way you do business and treat people. Make sure you are on the same page up front. Make sure rehab work is done well, bills are paid on time, tenants receive a great place to live, and more. If you’ve made mistakes in the past, all you can do is tackle it now It’s never too late to try and mend it.

Related: 5 Tips for Managing Your Online Reputation

Another way I apply this mindset is sharing. I offer plenty of free knowledge and insight from my personal experience as an investor to help others. There’s no immediate transaction for the short-term. Sometimes there won’t be, but I can still help someone and set a precedent for others to follow and pay forward. Maybe five years from now, I could get that email saying that the insight I provided helped someone jumpstart their career from zero to 100 deals. That and the impact for their families, communities, and future generations is priceless.

So thank you for the opportunity to share. Thank you for your time and attention. I hope that moving forward, I can keep providing great and valuable content for you. Let me know if there is anything else you’d like me to write on.

How do you ensure that you keep a top notch reputation within real estate?

Let me know with a comment!

Sterling is an multifamily investor specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling w...
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    Sonia Spangenberg from Manassas, VA
    Replied about 4 years ago
    Great post.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Thank you! What was your biggest takeaway? Reply Report comment
    Penny Clark from Sacramento, California
    Replied about 4 years ago
    Loved this article, Sterling! So much of the time people blame their mistakes on others or the circumstances surrounding a deal. It’s painful for anyone to admit they made a bad decision or missed something that cost them or their clients money. It sure hurts when it happens to me! However, it’s worse if you don’t do anything to rectify it because then people won’t trust you anymore. Thank you for your unique perspective on this topic.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Glad you enjoyed, Penny! What is a recent mistake of yours and how did you go about solving it?
    Douglas Skipworth Rental Property Investor from Memphis, TN
    Replied about 4 years ago
    Sterling, I can’t wait to meet you someday because we’re cut from the same cloth, my friend. I saw your title and tried to guess what the one thing would be. “Reputation” is the word that immediately bopped into my mind! Great post! I couldn’t agree with you more.
    Douglas Skipworth Rental Property Investor from Memphis, TN
    Replied about 4 years ago
    Sterling, I can’t wait to meet you someday because we’re cut from the same cloth, my friend. I saw your title and tried to guess what the one thing would be. “Reputation” is the word that immediately bopped into my mind! Great post! I couldn’t agree with you more.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Thanks Douglas! You’re my brother from another mother! Glad you enjoyed.
    Douglas Skipworth Rental Property Investor from Memphis, TN
    Replied about 4 years ago
    Indeed!
    Patrick Gallagher
    Replied about 4 years ago
    Great job Sterling. Reputation goes a very long way. What comes around goes around. Some deals won’t get done just because of who the player(s) are. It’s very interesting. But true. Do things the right way. Those that scam do not stay in the business long.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Well summed up Patrick. Glad you enjoyed the read.
    Andy Cross Wholesaler from Culver City, California
    Replied about 4 years ago
    This is the quote that stuck with me “And then there are the transactions and deals that just get messed up, have mistakes, or differences in expectations. It doesn’t really matter the reason, but if you have an issue, fix it!” This here is exactly how I am at work (since I havent done any deals). And I agree, there are many people out there that will never be pleased. I believe there is not much you can do about that. All you can do is do what you can to try to make it right. And if they refuse to accept, oh well!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Thank you for the comment. Do you plan on getting a deal under your belt this year, Andy?
    Andy Cross Wholesaler from Culver City, California
    Replied about 4 years ago
    I sure as hell will try. Unfortunately, time, money, and resources aren’t on my side right now. But, I’m trying my best to work with what I’ve got.
    Rick Grubbs Rental Property Investor from Salisbury, NC
    Replied about 4 years ago
    The Bible says “A good name is to be chosen rather than great riches” Proverbs 22.1. I could give many examples of how I have found this true as a RE investor and in all of life.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    That is powerful Rick. Thank you so much for the share! Enjoy your holiday.
    Abe Heaney from West Long Branch, New Jersey
    Replied about 4 years ago
    Great Post Sterling. I totally agree that the most important thing is “your name.” Your reputation will always precede you.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Thank you for the kind words. Your name is something that will always be with you! Enjoy your upcoming holiday, Abe.
    Joe Canfield Contractor from Cleveland, OH
    Replied about 4 years ago
    Nailed it! If you wouldn’t be proud to tell your mother what you did, you need to go back and make it right. Nothing else matters. You can make more money, buy more property, etc. Rebuilding your reputation is infinitely harder.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    Thank you for the words of wisdom Joe! Your points were spot on as well.
    Michael Lee Investor from Coppell, TX
    Replied about 4 years ago
    That was a good piece. Thank you for your thinking.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    No, thank you for the kind words. What was your biggest takeaway from the article, Michael?
    KATHERINE THEURI
    Replied about 4 years ago
    Well written Sterling! Doing things right and with integrity is the true path to success. Thanks for putting things in perspective .
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    It goes a long way. Thank you for your time!
    Ashley E. Investor from Henderson, Colorado
    Replied about 4 years ago
    I think the most important takeaway from this is the part where you mention making a mistake, owning it, and making it right. That is key to earning trust back and rebuilding any kind of relationship from the bottom up. Most people believe in forgiveness, if one is wo/man enough to admit their mistake, commit to fixing it, and show their true intention. Good post Sterling
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied about 4 years ago
    I completely agree with you Ashley. Thank you for your input & best of wishes! Glad to hear from you.